Airline vs Travel Credit Card: Which Is Best?
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Written by
Emily Sherman
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Edited by
Jasmin Baron
Booking a flight with points is a great feeling — who doesn’t want to jet off to a destination for little to no money out of pocket? But earning the points required to book award travel is a different story, often requiring you to understand complex earning schemes or spend a high amount with a particular airline.
The good news is that both the best travel credit cards and airline credit cards can help you fast-track your way to nearly free travel. Airline-specific and flexible travel cards have different benefits, though, so it’s important to choose the one that makes the most sense for your spending habits.
Differences Between Airline and Travel Credit Cards
The primary difference between an airline credit card and a travel credit card comes down to how you can spend your points or miles.
With a co-branded airline card, you earn miles with a particular airline frequent flyer program, such as Southwest Rapid Rewards, United MileagePlus or American Airlines AAdvantage, and you can typically only spend your miles on redemptions with that airline. Earning rewards may also be a bit more restrictive, with the highest earning rates offered on flights or other purchases made with your chosen airline. While this can be limiting, airline cards also are more likely to come with flight-specific perks, including free checked bags and priority boarding.
Travel credit cards, on the other hand, earn flexible points and miles that can be spent on a variety of travel purchases with hotels, airlines, rental cars and more, rather than one specific brand. While you may earn the highest rewards rate on travel purchases, these flexible cards also frequently offer elevated rates on everyday purchases. However, airline-specific benefits like checked bags are uncommon on these cards, and even perks like airport lounge access are restricted to the most expensive offerings.
Why You Should Consider an Airline Card
Airline credit cards are best for frequent flyers who are loyal to a particular airline. This is because earning rates are typically higher on purchases made with the airline, and the top benefits are related to flights.
Money-Saving Perks
Perhaps the biggest draw for airline credit cards is day-of-travel benefits that can be worth a lot of money for avid travelers. For instance, if an airline card offers a first checked bag for free, frequent flyers can save a lot over time. Take the Citi® / AAdvantage® Platinum Select® World Elite Mastercard® (an advertising partner), which charges an annual fee of $99, waived for first 12 months. It comes with a free first checked bag on domestic American Airlines itineraries for cardholders and up to four companions on the same reservation. With American Airlines charging $35 to $40 per first checked bag, it would only take three qualifying free ones to make up for the card’s annual fee.
Faster Boarding
Priority boarding is another valuable perk offered by airline cards. Boarding in an earlier group can help you get settled on the plane early and secure coveted space in the overhead bins. For example The New United Quest℠ Card offers this benefit on United flights.
More Miles
Most airline loyalty programs offer members a variety of ways to earn miles, but the bulk of earnings will come from taking flights. A credit card with the airline can boost your points or miles earnings with rewards on flight purchases, in addition to everyday purchases. As an example, the Southwest Rapid Rewards® Plus Credit Card earns 2x points on Southwest purchases (on top of points earned as a Southwest Rapid Rewards member) and 2x points on other purchases you might make more frequently, such as groceries and at gas stations (on the first $5,000 in combined purchases per year). These bonus rates make it easier to rack up enough points for an award flight.
Pros and Cons of an Airline Card
Pros
- Frequent flyers can quickly accumulate miles with their preferred airline
- Benefits like free checked bags and in-flight discounts can save you money
- Expedited boarding or security clearance can save you time at the airport
Cons
- If you don’t fly often, you may not use the perks enough to justify an annual fee
- You can typically only use miles with the airline for flights or partner redemptions
- Earning rates on everyday purchases like dining or groceries may be lower than those on flexible travel cards
Why You Should Consider a Travel Card
A travel credit card can offer some of the same benefits as an airline card — namely, a faster track to earning award flights — but comes with more flexibility in how you redeem rewards.
Flexible Redemption Options
Most airline credit cards restrict points or miles redemptions to purchases with the airline or its partners; travel credit cards typically offer more ways to use rewards. The Capital One Venture X Rewards Credit Card, for example, lets you redeem miles for all kinds of travel — including rental cars, hotel stays and flights — or you can opt for statement credits, gift cards or online purchases with select retailers (albeit at a lower rate). Some travel cards even let you transfer points to partner airline and hotel loyalty programs, if you want to pool with those earnings. The value of your points and miles will vary depending on how you use them, but travel credit cards still offer more flexibility.
Higher Earning Rates on Everyday Purchases
Airline credit cards and travel credit cards earn points and miles on both travel and everyday purchases, such as dining or grocery shopping. Rates may vary, with travel cards often offering slightly better earning rates on non-travel spending.
Consider the Wells Fargo Autograph® Card and the American Airlines AAdvantage® MileUp® Card (an advertising partner), neither of which charges an annual fee. The Autograph Card earns 3x points on a variety of everyday purchases (restaurants, travel, gas stations, transit, popular streaming services and phone plans), while the AAdvantage MileUp Card only earns 2x on grocery purchases and American Airlines purchases. Depending on your spending habits, you may be able to earn rewards faster with the Autograph Card.
Diverse Benefits
Travel cards don’t always come with flight-centric benefits like free checked bags or priority boarding. That doesn’t mean the cards are without valuable perks. Your mileage will vary by travel card, but almost all of them offer some kind of benefit that can save you money.
Lower-cost options like the Chase Sapphire Preferred® Card ($95 annual fee) offer top-notch travel protections, statement credits and the ability to earn valuable Chase Ultimate Rewards® points.
Meanwhile, The Platinum Card® from American Express (an advertising partner) is an ultra-premium card with a $695 annual fee, but it offers more than $1,500 in annual value through its perks.
Pros and Cons of a Travel Card
Pros
- You can redeem the points or miles earned for travel purchases with multiple brands
- Earning rates are often higher on everyday purchases like dining or groceries
- Some cards offer benefits like travel insurance or airport lounge access
Cons
- You won’t get free checked bags or expedited boarding
- Earning rates with your preferred airline may be lower than you could get with an airline-specific card
- Perks like lounge access are reserved for expensive card offerings
The information related to The New United Quest℠ Card and Southwest Rapid Rewards® Plus Credit Card was collected by CardCritics™ and has not been reviewed or provided by the issuer of this product/card. Product details may vary. Please see issuer website for current information. CardCritics™ does not receive a commission for these products.
Frequently Asked Questions About Airline or Travel Credit Cards
Is an airline credit card better than a travel credit card?
An airline credit card is not necessarily better than a travel credit card, though it may be for some users. Travel cards typically offer more flexibility than airline cards, while airline cards offer more day-of-travel perks such as free checked bags. The best card depends on how frequently you fly and your preferred card benefits.
What is the difference between a travel credit card and a regular credit card?
A travel credit card offers rewards in the form of points or miles that you can redeem for a variety of travel purchases. These cards also offer travel-focused benefits, including trip protections, credits for expedited security programs like TSA PreCheck or lounge access. Meanwhile, other credit cards may earn cash-back rewards or focus on other benefits, like introductory APRs.
Which airline travel credit card is the best?
The best airline credit card for you depends on several factors, including your preferred airline and how often you fly. For instance, if you’re a United Airlines frequent flyer, you may consider The New United℠ Explorer Card or The New United Club℠ Card.
For Southwest, you could consider the Southwest Rapid Rewards Plus Card or Southwest Rapid Rewards® Priority Credit Card. No matter the airline, you’ll want to compare the benefits and earning rates of various cards against the annual fee to decide if it makes sense in your budget.
The information related to The New United℠ Explorer Card and The New United Club℠ Card was collected by CardCritics™ and has not been reviewed or provided by the issuer of this product/card. Product details may vary. Please see issuer website for current information. CardCritics™ does not receive a commission for these products.
Is it worth getting a travel credit card?
It can be worth it to get a travel credit card, especially if you’re a regular traveler. Travel cards are available with a range of annual fees, earning rates and benefits. You’ve got options even if you’re an occasional traveler who wants to avoid high fees but still earn flexible points or miles. Jetsetters who want lounge access, elite status and other luxury perks have choices as well, in exchange for a higher annual fee.
